{"id":229832,"date":"2026-03-31T06:30:00","date_gmt":"2026-03-31T10:30:00","guid":{"rendered":"https:\/\/news-you-need.com\/index.php\/2026\/03\/31\/why-electric-utility-stocks-are-a-smart-way-to-bet-on-ai\/"},"modified":"2026-03-31T21:10:18","modified_gmt":"2026-04-01T01:10:18","slug":"why-electric-utility-stocks-are-a-smart-way-to-bet-on-ai","status":"publish","type":"post","link":"https:\/\/news-you-need.com\/index.php\/2026\/03\/31\/why-electric-utility-stocks-are-a-smart-way-to-bet-on-ai\/","title":{"rendered":"Why Electric Utility Stocks Are A Smart Way To Bet On AI"},"content":{"rendered":"

Why Electric Utility Stocks Are A Smart Way To Bet On AI<\/a><\/p>\n

https:\/\/www.forbes.com\/sites\/baldwin\/2026\/03\/31\/why-electric-utility-stocks-are-a-smart-way-to-bet-on-ai\/<\/a><\/p>\n

Publish Date: 2026-03-31 06:30:00<\/a><\/p>\n

Source Domain: www.forbes.com<\/a><\/p>\n

There\u2019s more than one<\/strong> way to own a piece of the artificial intelligence sector. Skip the vendors of chips and large language models. Invest in the power supply. <\/p>\n

Shares of electric utilities under contract with giant data centers are sizzling. The past three years have seen a doubling for Entergy, a quadrupling for Constellation Energy and a sixfold gain for Talen Energy. <\/p>\n

Riding this electric wave is Jay Rhame, chief executive of W.H. Reaves & Company, a somewhat obscure money manager in Jersey City, New Jersey, that has an uncommon focus: utilities. Its Virtus Reaves Utilities ETF has, since opening in 2015, raced ahead with a 14.5% annual return, three points ahead of the Morningstar utilities category. A key element of Reaves\u2019 success: antici\u00adpating which power producers will benefit from AI electric demand. <\/p>\n

Rhame totes up the wins: Entergy is building a custom plant for Meta Platforms in gas-rich, regulation-light rural Louisiana. Constellation has a deal with Microsoft to power computers with a resurrected nuclear plant at Three Mile Island. Talen Energy, a once-bankrupt power producer spun out of Pennsylvania Power & Light, is going to sell output from the Susquehanna nuclear plant to Amazon. The Reaves exchange-traded fund has ridden all three to big gains. <\/p>\n

It once was that utility shares had nothing to offer but dividends\u2014large but stagnant. AI changed that. A collection of semiconductors used to make computers smart can easily draw one or two gigawatts of electricity, enough to power a city. \u201cThe growth outlook for utilities is probably the best it\u2019s ever been,\u201d Rhame says. <\/p>\n

Growth or income: Pick one. The ETF, with a 1.9% distribution that would turn off the average retiree, goes for growth. Income-hungry custo\u00admers prefer another product, the Reaves Utility Income Fund. This $3.7 billion closed-end is a diversified collection of electric, telecom and energy-adjacent companies with a 5.9% payout. <\/p>\n

The closed-end helps pay the bills, but all…<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Why Electric Utility Stocks Are A Smart Way To Bet On AI https:\/\/www.forbes.com\/sites\/baldwin\/2026\/03\/31\/why-electric-utility-stocks-are-a-smart-way-to-bet-on-ai\/ Publish Date:…<\/p>\n","protected":false},"author":1,"featured_media":229833,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/imageio.forbes.com\/specials-images\/imageserve\/69c2cace5fa899d217826698\/0x0.jpg?format=jpg&height=900&width=1600&fit=bounds","fifu_image_alt":"","footnotes":""},"categories":[14],"tags":[20],"class_list":["post-229832","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","tag-artificial-intelligence"],"_links":{"self":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/229832"}],"collection":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/comments?post=229832"}],"version-history":[{"count":1,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/229832\/revisions"}],"predecessor-version":[{"id":229834,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/posts\/229832\/revisions\/229834"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media\/229833"}],"wp:attachment":[{"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/media?parent=229832"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/categories?post=229832"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news-you-need.com\/index.php\/wp-json\/wp\/v2\/tags?post=229832"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}